Art Disposals Recommended in Report on Randolph-Macon College’s Shaky Finances

A recently completed financial review of Randolph-Macon Woman’s College, Lynchburg, VA, a copy of which was obtained today by CultureGrrl, provides more background on the threat posed by the college’s shaky finances to the integrity of the American art collection of its Maier Museum. The museum’s holdings include pictures by Bellows, Cassatt, Hopper, Lawrence, O’Keeffe and Sloan, among others, and rumors have been flying that some of its most signficant works are in play.
The financial review, dated May 7 and prepared for the college by Larry Goldstein of Campus Strategies, cited what it called an “alarming statistic” from the college’s fiscal 2006 audited financial report—“that the college financed in excess of 40 percent of its operating expenses from endowment spending. This is a staggering percentage.”
The report further noted that “the College recognizes the seriousness of the situation….By admitting men in the fall of 2007, RMWC will embark on a new chapter in its history–one that, if coupled with other structural financial changes, has the potential to reverse the recent financial downturns that have been experienced.”
And then the kicker:
Finally, as is already under consideration, the College must realize a substantial financial inflow through the leveraging of a portion of its art collection. The amount realized should immediately be added to the College’s endowment to increase the amount of money available for operations through the endowment spending rate….
Understandably the College is not in complete control of the situation related to the art. It would be optimal though to complete the contractual arrangements before the 2006-07 financial statements are issued….
Equally, if not more, important will be the receipt of the cash from the arrangement prior to December when SACS [the Southern Association of Colleges and Schools, an accrediting body] will meet to review the College’s status. Failure to realize the dramatic cash infusion to the endowment likely will result in the College being placed on probation.
In a column on Friday, Michael Paul Williams of the Richmond Times Dispatch, noted that “one art professor, Laura Katzman, has already quit in protest” against the possible disposals. He then quoted Randolph-Macon spokesperson Brenda Edson on the controversy, and appended his own final comment:
“If the college doesn’t succeed, the museum won’t be there at all,” Edson said. “It’s painful to consider we might have to raise funds with the art collection. But we are doing our best to put the school on sound financial footing.”
But at what price?